Issue - meetings

This report provides details of the Cabinet’s proposals for the capital and revenue budgets for 2018/19. In accordance with the Constitution, Council is required to approve the capital and revenue budgets, rent increases and Council Tax for 2018/19.

Discussion:

This report provided details of the revenue and capital budget proposals for 2018/2019.

The Cabinet had considered initial budget proposals on 21 November 2018, which had been developed in accordance with the principles set out in the Medium Term Financial Strategy. In accordance with the budget and policy framework rules within the Constitution the Overview and Scrutiny Committees had then considered the Cabinet’s proposals prior to Cabinet’s consideration of the draft budget on 6 February 2018.

It was noted that an overarching Diversity Impact Assessment, as set out in Appendix 8 to the report, summarised the results of the Diversity Impact Assessments which had been completed for each of the services affected by the proposed budget changes.

The Leader of the Council, Councillor Jarrett, supported by the Deputy Leader and Portfolio Holder for Housing and Community Services, Councillor Doe, proposed the recommendations in the report, together with the following detailed changes listed below in relation to recommendation 26.3 on page 125 of the Agenda:

“That the following reductions, generating £1,783,000 of headroom, are made to revenue allocations as follows:

·         Education Grants: Charge the 0-25 team to the DSG High Needs Block giving £833,000.

·         Centralisation of ICT contracts giving £200,000.

·         Rephasing the BRMF (Building Repairs and Maintenance Fund) programme giving £750,000.

And that this headroom is invested as follows:

It should also be noted that car parking charges for pay and display for 2018/19 in Medway are frozen, with the intention of no increase for a further two years, that is until 2020/21.”

In accordance with rule 12.5 of the Council Rules, a recorded vote on the

proposal was taken.

For: Councillors Aldous, Avey, Bhutia, Brake, Carr, Mrs Diane Chambers, Rodney Chambers OBE, Chitty, Clarke, Doe, Etheridge, Fearn, Filmer, Franklin, Griffin, Gulvin, Hicks, Mrs Josie Iles, Steve Iles, Jarrett, Joy, Kemp, Mackness, Opara, Potter, Purdy, Saroy, Tejan, Tranter, Turpin, Wicks and Wildey. (32)

Against: Councillors Bowler, Cooper, Craven, Freshwater, Godwin, Griffiths, Johnson, Khan, Maple, McDonald, Murray, Osborne, Pendergast, Price, and Stamp. (15)

Note: Councillors Hall and Howard were not present for the recorded vote.

The proposal was agreed.

Decision:

a)    The Council approved the recommendations of Employment Matters Committee on 31 January 2018 regarding the proposals for a pay award as set out at paragraph 4.5 of the report, as amended by decision b) below.

b)    The Council approved the general fund gross, income and net revenue estimates as summarised in Appendix 1 to the report in the  ...  view the full minutes text for item 788

Background:

This report presented proposals for the capital and revenue budgets for 2018/2019.

It was noted that the Cabinet had considered initial budget proposals on 21 November 2017, which had been developed in accordance with the principles set out in the Medium Term Financial Strategy (MTFS). The MTFS had identified a potential revenue shortfall of £4.101 million in 2018/2019 rising to £17.715 million by 2021/2022.

The report stated that Medway’s joint submission to pilot 100% business rate retention, in a pooled arrangement with Kent County Council, Kent Fire and Rescue Service and the twelve lower tier Kent authorities, had been one of only ten successful bids.

The report stated that the proposed revenue budget requirement of £290.052 million (as set out in Appendix 2 to the report) exceeded the estimated available resources by £49,100. However, options were being considered to address this prior to the Council’s budget setting meeting on 22 February 2018. 

The proposed capital programme for 2018/2019, incorporating existing schemes and anticipated funding allocations, was £100.466 million. An overall summary and a summary by directorate of the proposed capital programme were attached at Appendix 4 to the report.

It was noted that budget proposals had been referred to all the Overview and Scrutiny Committees for consideration. The Overview and Scrutiny Committees’ views together with the recommendations of the Business Support Overview and Scrutiny Committee (30 January 2018) were set out for Cabinet in an addendum report.

The schedule of fees and charges was set out in Appendix 6 to the report.

The report set out the requirements under equality legislation and it was noted that an overarching Diversity Impact Assessment would be included in the budget report to Full Council on 22 February 2018.

Reasons:

The constitution requires that Cabinet’s budget proposals must be forwarded to Council for consideration and approval.

The Council is required by statute to set a budget and council tax levels by 11 March each year.